I think Trumps actions on Canada and Mexico, might have a minor net effect either way and is not significant. But with China, I think Trump has a point. China is seriously blowing a lot of the competition out of the water, and that too in high tech. Eg. DJI and Unitree and the self driving companies. I am seriously convinced that these companies and deep seek, are far more valuable than the upper crop of American tech companies. Add to that the solar, and EV companies. The point is that the US can get away with pushing for broader market access and concessions from China, because China too wants greater access for its highly competetive sectors. Likewise, the US too is in the pole position with AI, the single biggest point driving markets today. In such as dynamic, I think both US and China will come better off by competing intensely. US automakers will find themselves getting thrown out of many markets, because of Chinese efficiency. At the same time, the US too can overcome the rare earth embargo fairly easily, given it's strong chemical and metallurgical industry. The end result of this intense period of competition will most likely be more optimal market, with lesser trade barriers and better growth for all parties.
Can the current trade dynamic between China and the US benefit both?
byu/EntertainerOk6802 inAskEconomics
Posted by EntertainerOk6802
1 Comment
Whenever trade occurs voluntarily, it is *always* good for both parties, and vice versa.